View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Analysis
September 16, 2021updated 26 Oct 2021 11:46am

Tracking the power sector’s Covid-19 recovery: How has the sector fared in Q2 2021?

By Patrick Scott

The power sector has emerged as one of the worst performers in the world economy when it comes to post-pandemic perfomance in Q2 2021.

Activity levels in the sector were 4.6% higher than they were at the end of 2019, before the pandemic decimated economies across the world. This means that, of the 18 sectors included in the analysis, the power sector ranks 15th in terms of its latest value for Covid-19 activity recovery.

The healthcare sector saw the highest sector activity levels in Q2 2021 relative to the last quarter of 2019, with the automotive, technology and apparel sectors comprising the rest of the top four.

GlobalData's sector activity metric is a derived from several of the company's research datasets. The composite index is composed using a combination of company level data on job advertisements, deals, stock prices and sentiment analysis across financial filings and news reports. It is a dynamic metric taking in millions of datapoints that can be used to track how strongly different sectors or industries are performing.

We can also delve into the component parts of the index to get a sense of exactly where companies from a given sector are over or underperforming. One of the more traditional measures of tracking performance is through the value of company stocks, which we've grouped together by industry to form a stocks performance index for each. After a dip in Spring 2020, the average sector has been performing above pre-pandemic levels since early August 2020. However, the extent of recovery varies by sector.

Power stocks generally underperformed the market in the past year, as per the chart above. By 30 June 2021, stocks in these companies - as tracked by GlobalData - were 8.5% above their starting point in October 2019.

Hiring levels are also useful in determining how confident a company is feeling about the months ahead. GlobalData's jobs index tracks job openings across thousands of companies on a daily basis, allowing us to assess that confidence in real-time and gauge which sectors are feeling Covid-19's impact the hardest.

The number of open job advertisements in power is currently at a lower level compared to most other industries, relative to their pre-pandemic norms. By 20 June 2021, the latest date for which data are available, hiring levels were 31.4% higher than those recorded prior to Covid-19's impact. This means that the power ranks 11th out of the 18 sectors analysed when it comes to the recovery of hiring levels.

In addition to jobs and stocks, our composite index also factors deals into account, tracking mergers, acquisitions, private equity and venture capital deals on a daily basis. This, again, can be seen as a good indicator with which to gauge how ambitious companies are feeling, with a greater number of deals indicating a more optimistic outlook.

Relative to pre-pandemic levels, the volume of financial deals in power has been lower than that of most other industries over the past 19 months.

By 30 June 2021, power deals were 6.7% lower than levels at the start of October 2019. This places the sector in 12th position out of the 18 industries included in the analysis on current deal volume recovery.

Related Companies

Free Report
img

Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU